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Originally Posted by AZ SLIM
We own a rental villa in the village of Richmond. I keep detailed records. Annual expenses run about $14k. Includes taxes, bond, amenities, utilities, insurance, internet with streaming tv, and yard maintenance. It does not include a mortgage or a pool. It also doesn't include increased utility cost caused by the renters. The $14k is close to what it would cost if it sat vacant all year. I agree with the person who said that prices of everything are rising, even faster than inflation, so you might want to add some for future estimates. Bond payments vary greatly. You can view them somewhere on the CDD website. Your realtor should be able to provide the bond info by area.
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It appears that you are not including the cost of "lost interest on your investment." If your house has a value of say $400,000 and it's just sitting unused, then it's costing you $16,000 per year (at 4%) just by having your money tied up in the house.
This "loss of interest" cost is in addition to all your other costs like taxes, maintenance, utilities, insurance, bond payments, etc. The only consolation is that your house MIGHT be appreciating in value at a rate that MIGHT offset your costs, but this is certainly not guaranteed.
Buying a house as a place to live and provide shelter for your family is a "no brainer" for most people. However, owning two houses and living in only one at a time is like having one sit empty all the time even if you move back and forth between houses. The only "saving grace" is if both houses continue to appreciate in value.
If we have a housing recession, which does happen from time to time, it can get quite expensive carrying the costs associated with having your money tied up in two places PLUS the cost of maintaining both places. With all the inflation we've had in housing in the past several years, a housing recession soon is certainly not out of the realm of possibility.
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